Charlotte home prices rise 6.9% amid continued low supply
06/03/2014 10:03 AM
06/03/2014 6:12 PM
Charlotte-area home prices rose 6.9 percent in April from a year ago, as low supplies of properties for sale continued to drive prices higher nationwide, a report Tuesday showed.
The region’s home prices have posted annual gains for 28 months in a row, according to the report from real estate data firm CoreLogic. The figures are based on repeat sales of distressed and nondistressed properties.
Compared with March, prices in the region increased 1.1 percent.
Nationwide, home prices are expected to keep rising this year, as the inventory of homes on the market remains tight, Sam Khater, deputy chief economist for the Irvine, Calif.-based company, said in a statement.
The number of existing homes on the market in the Charlotte region stood at a 5.4-month supply in April, according to the Charlotte Regional Realtor Association. A widely accepted definition of a seller’s market is one in which the number of homes for sale is below a six-month supply.
CoreLogic predicts U.S. home prices will increase about 6.3 percent in May from the same month last year and 1 percent from April.
Prices nationwide jumped 10.5 percent from April 2013, for the 26th month of consecutive year-over-year gains, CoreLogic said. April prices rose 2.1 percent from March.
Like other companies that track the U.S. housing market, CoreLogic says that annual gains in home prices have been slowing. The national rate of annual appreciation in April marked the slowest pace in 14 months, according to CoreLogic.
Many economists and housing industry officials expect the pace of annual appreciation to continue slowing, returning to more normal rates.
Last week, the Standard & Poor’s Case-Shiller home price index reported that Charlotte-area home prices rose 4.9 percent in March from a year ago.
It was the fifth month in a row that Charlotte posted a year-over-year slowdown in appreciation, according to Case-Shiller. A composite Case-Shiller index of 20 U.S. cities showed slowing annual price increases for the past four months.
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